We are pleased to announce the appointments of Mr Edward Willett and Mr Geoffrey Swier as members of the new Australian Energy Regulator (AER).
Mr Willett is appointed on a full time basis for a term of approximately two and half years and Mr Swier is appointed on a part time basis for a three year term. These appointments will commence on 30 June 2005.
Mr Willett and Mr Swier will join Mr Steve Edwell, the inaugural Chair of the AER, at the commencement of the AER’s operations on 1 July 2005. The AER will initially assume responsibility for regulatory, monitoring and enforcement functions of electricity transmission.
Mr Willett is a member of the Australian Competition and Consumer Commission (ACCC) specialising in energy and telecommunications matters. He is an economist with broad experience in economic regulation, and in developing and implementing economic and competition policy. He will remain a member of the ACCC during his appointment to the AER.
Mr Swier is currently a Director of Farrier Swier Consulting, with expertise in energy sector reform and market development. He has an extensive background in providing advice on microeconomic reform policy and regulation. By virtue of his appointment to the AER, Mr Swier will become an associate member of the ACCC. In accordance with the Australian Energy Market Agreement 2004, the appointment of Mr Swier was made following consultations with the States and Territories and only after a majority of support for the appointment had been obtained.
The AER is a new independent national body which will be responsible for economic regulation and rule enforcement in Australian energy markets. It will play a central role in the Ministerial Council on Energy’s energy market reforms to streamline energy regulation and reduce complexity within an enhanced framework of accountability. This reform will particularly benefit energy businesses or investors who seek to operate in different jurisdictions and will greatly contribute towards achieving a truly national, competitive and efficient energy market.
Background
The AER has been established under the Trade Practices Act 1974 as a constituent part of the ACCC. The AER will operate within a new regulatory framework which has been agreed by the Ministerial Council on Energy (MCE) and endorsed by the Council of Australian Governments (COAG). Further information on the AER and the MCE’s energy market governance reforms is available at www.mce.gov.au.
The MCE, on 20 May 2005, announced that the new Australian Energy Market Commission and the AER, would commence their functions under the new National Electricity Law and Rules from 1 July 2005 (see MCE Energy Market Reform Bulletin Number 40). The AER will initially assume responsibility for electricity transmission regulatory, monitoring and enforcement functions. Such functions were previously conferred on the National Electricity Code Administrator and the ACCC. COAG has agreed that other functions, such as the regulation of electricity distribution and retail businesses (other than retail pricing) and regulation of the gas industry, will be transferred to the AER over the next eighteen months.